GXY (ASX) Ann: Trading Halt

Thank you for the excellent analysis. I agree with your points. Galaxy should have not invested in A40. It will receive the debt but it wasted the investment in the stock. In my opinion, Galaxy Management was out of its league pretending to play an aggressive gambling game that belongs to the big fish. Galaxy is a small company that needs to execute instead of playing roulette. In my opinion, the company should walk away from A40 and should focus on:

1) Get SDV to production ASAP with a small/medium size module to preserve cash, learn, optimize the process and expand gradually.
2) Keep optimizing MC, keep drilling to increase resource and continue production at decent levels (30k-40kt tons per quarter. It greatly concerns me that there may not have been any shipments in November. Reduced guidance does not mean zero, which is concerning and sends the wrong message to the market.
3) Keep working on James Bay for future development, but there is no need to rush it. Actually, I once liked the idea that Thesi recently brought up that Galaxy should participate in the bidding process for NAL’s mine and processor in Quebec, provided it could be tied to James Bay in the future. In my opinion, bidding for NAL would have made more sense than A40. However, but I would no longer pursue NAL because Galaxy can’t afford another risky gamble after wasting tens of millions in A40, and it should keep its focus solely on SDV and MC at present.

I support the latest plan for SDV, but I am growing concerned about Galaxy’s management lack of focus, which has recently resulted in over promising and under delivering, which is opposite to what AT used to preach. I have been a loyal long term investor in Galaxy for almost 4 years. I have accumulated and have kept most of my shares with occasional minor trades. I am willing to wait but I want to start seeing more execution and less BS. This means real progress in SDV and MC (nothing else) that we can confirm by satellite photos, shipments, etc. If I sense that this is not happening, I will transfer y investment to Orocobre, which I also own and are way ahead of Galaxy in terms of execution.